LATAM CLOSE-Four issuers raise US$1.867bn in LatAm primary

* Honduras bond orders top US$5bn

* Argentina clinches US$6bn repo deal

* Cemex well-positioned despite Mexico headwinds: Fitch

* JPM says Brazil, Mexico politics pose bank bond risks

By Mike Gambale

NEW YORK, Jan 12 (IFR) – Below is a recap of primary issuance activity in the LatAm primary market on Thursday:

Number of deals priced: 4

Total issuance volume: US$1.867bn


Aeropuertos Dominicanos Siglo XXI (Aerodom), an airport operator in the Dominican Republic, has announced a US$300m 2029 bond. The bond, which has an average life of around 10 years, is being led by JP Morgan and Scotiabank. Expected ratings are BB-/Ba3 by S&P and Moody’s. Proceeds will go to fund a tender and consent solicitation for Aerodom’s 9.25% senior secured notes due 2019 and for general corporate purposes.

IPTs 7% to low 7%s

GUIDANCE: US$300m 2029 bond at 6.875% area (+/-12.5bp)

LAUNCH: US$317m 2029 bond at 6.75%

PRICED: US$317m 2029 bond; par; 6.75%


The Republic of Honduras, rated B2/B+, announced a US$700m 2027 bond expected to price on Thursday, according to one of the leads on the deal. Bank of America Merrill Lynch and Citigroup are acting as leads on the deal.

IPT: Mid to high 6%

GUIDANCE: 6.375% area (+/- 1/8)

LAUNCH: US$700m at 6.25%

PRICED: US$700m 2027: par; 6.25%

BOOK: US$5.6bn


Argentina power company Genneia has announced a US$300m 5NC3 bond ahead of expected pricing on Thursday. Proceeds are going toward repaying debt and financing capital expenditures. Ratings are expected to be B3/B+ by Moody’s and Fitch. Bank of America Merrill Lynch, Itau and JP Morgan are acting as leads.

IPTs low 9%

GUIDANCE: Genneia US$300m 5NC3 at 8.875% (+/- 1/8)

LAUNCH: US$350m 5NC3 at 8.75%

PRICED: US$350m 5NC3; par; 8.75%

BOOK: US$1bn


Raizen Fuels Finance S.A., BBB-/BBB, announced a US$500m (no grow) 144A/Reg S 10-year senior unsecured notes. Books: BAML, Citi, JPM, SANT, Bradesco BBI. Notes guaranteed by Raizen Combustiveis and Raizen Energia S.A. UoP: Debt refi and GCP. Settle: T+5.

IPTs: Mid-to-high 5%

LAUNCH: US$500m at 5.30%

PRICED: US$500m 5.30% cpn 10yr (1/20/27). At 100, yld 5.30%.

BOOK: about US$3bn


The Republic of Argentina, rated B3 by Moody’s and B- by S&P, has mandated BBVA, Citigroup, Deutsche Bank, HSBC, J.P. Morgan, and Santander to arrange a series of fixed income investor meetings commencing on Monday, January 16th. A benchmark USD-denominated 144A / Reg S (with registration rights) transaction will follow, subject to market conditions.

Monday, January 16th London, Tuesday, January 17th Boston & L.A., Wednesday, January 18th New York

The Republic of Chile announced on Thursday a peso-denominated 144A/Reg S bond due February 28 2021, with pricing set as early as January 18.

The new bond is a tap of a local instrument that priced last year and will be sold in a Euroclearable format to foreign investors, a source familiar with the deal told IFR.

The structure is similar to what has been done in Mexico, where the sovereign and some corporates such as oil company Pemex have sold domestic bonds that can be settled in both Euroclear and locally.

The security carries a 4.5% annual coupon, accruing from the issuance date of September 1 2016. The deal is governed by Chilean law and is listed on the Santiago Stock Exchange.

Bookrunners are BNP Paribas, Citigroup, Goldman Sachs and JP Morgan. Local currency ratings are Aa3/AA/AA-.The bond is being led by BNP Paribas, Citigroup, Goldman Sachs and JP Morgan. The country’s local currency ratings are Aa3/AA/AA-.

Metro de Santiago is marketing a 30-year bond issue through Bank of America Merrill Lynch and JP Morgan.

The borrower will head to New York on January 12 and 13 and Boston on January 17. Investor calls will also be held on January 16. Expected ratings are A+/A by S&P and Fitch. The new 30 year may carry an optional redemption before maturity.

Argentine energy company Pampa Energia kicked off roadshows this week as it looks to market a new US dollar bond.

The borrower will be in New York on January 12, in Los Angeles on January 13 and in London on January 16. The company is looking to raise up to US$500m size and considering tenors of five, seven or 10 years.

Expected ratings are B3/B-/B+. Citigroup and Deutsche Bank are acting as joint bookrunners, with Credit Agricole and Santander acting as co-managers.

Brazilian power company Neoenergia is considering a possible US dollar bond debut this year after sending out requests for proposals in late 2016, two market sources told IFR.

Neoenergia Group’s principal shareholders are Banco do Brasil’s pension fund Previ, with a 49.01% stake, and Spain’s Iberdrola with a 39% stake, according to the company’s website.

Paraguay is considering raising up to US$550m in the bond market in March, Reuters quoted Finance Minister Santiago Pena saying.

Inversiones Atlantida, the largest financial group in Honduras, has finished roadshows to market a potential debut US dollar bond through Oppenheimer. Expected ratings are B/B by S&P and Fitch.

Argentina’s Province of Entre Rios has finished roadshows ahead of a possible US dollar bond. Citigroup, HSBC and Santander organized investor meetings. Expected ratings are B-/B by S&P and Fitch.

Colombian glass company Tecnoglass has wrapped up investor meetings ahead of an up to US$225m debut dollar bond with a tenor of between five and seven years.

Expected ratings are Ba3/BB- by Moody’s and Fitch. Bank of America Merrill Lynch and Morgan Stanley have been mandated as joint bookrunners. (Reporting by Mike Gambale; Editing by Marc Carnegie)

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